Abercrombie & Fitch (ANF) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 net sales of $1.13 billion, up 21% year-over-year, with 18% comparable sales growth and strong performance across all brands and regions.

• Operating margin expanded 590 basis points to 15.5%, with operating income of $176 million and net income per diluted share of $2.50, more than double the prior year.

• Net income attributable to A&F was $133.2 million, up from $56.9 million in Q2 2023.

• Raised full-year sales growth and profitability outlook following strong first half and continued execution of global growth strategies.

• Strengthened balance sheet by redeeming all 8.75% senior secured notes and amending ABL Facility, resulting in $1.2 billion liquidity.

Financial highlights

• Net sales grew 21% year-over-year to $1.13 billion in Q2 2024; gross profit rate expanded 240 basis points to 64.9%.

• Operating income reached $176 million, nearly double prior year; EBITDA was $215 million (19% of sales).

• Net income per diluted share was $2.50, up from $1.10 last year.

• Cash and equivalents at $738 million; total liquidity reached $1.2 billion.

• Inventory increased 9% year-over-year, positioned for fall season.

Outlook and guidance

• Full-year net sales growth now expected at 12%-13%, up from prior 10% outlook; operating margin raised to 14%-15%.

• Q3 net sales expected to grow low double digits year-over-year, with operating margin of 13%-14%.

• Gross profit rate for Q3 expected to be consistent with 2023, with higher freight costs offsetting cotton benefits.

• Capital expenditures for the year projected at $170 million.

• Effective tax rate expected in the mid-20s.